Lopp mocks DeFiChain after CoinMarketCap goes haywire

Jameson Lopp, the American professional cypherpunk, mocks DeFiChain (DFI) on Twitter after that yesterday, when the indices on CoinMarketCap went haywire, the Decentralized Finance Blockchain for Bitcoin apparently stepped in to ensure its security.

Lopp and DeFiChain’s not very decentralized move 

Software engineer, columnist and Bitcoin advocate Jameson Lopp has publicly mocked the poorly decentralized move by DeFiChain, the Decentralized Finance Blockchain for Bitcoin. 

DeCeNtrALiZeD fInAnCe https://t.co/pO4wH2L21J

— Jameson Lopp (@lopp) December 15, 2021

“DeCeNtrALiZeD fInAnCe

Due to an error with the CoinMarketCap API, all DeFiChain Vaults have automatically been halted for now, ensuring the safety of your loans”.

And indeed, yesterday, CoinMarketCap’s (CMC) website had investors dreaming as they suddenly found themselves seeing exorbitant crypto prices, with the relevant percentages rising over the last 24 hours and 7 days. 

Bitcoin at $869,227,053, Ethereum at $53,048,246,157 and Binance Coin at $8,989,470,667, even Tether (USDT), which is a stablecoin pegged to the dollar, was found to be worth $16,130,486.

Definitely a dream for investors who clearly, when looking at their wallets, couldn’t help but notice it was a mistake by CMC’s famous price aggregation site. 

Lopp and comments on DeFiChain 

DefiChain, which offers DeFi services on Bitcoin such as lending, token wrapping, exchanges and more, also offers price oracles, which with yesterday’s API error on CMC appear to be linked to a centralized price aggregation platform as well. 

Just like Lopp, it is therefore easy to see how this link makes DeFiChain (DFI) still vulnerable and not very decentralized. In fact, after the communication on Twitter, a user and a computer scientist commented as follows:

It's built-in, every new block register 3 Oracle prices. If there are a deviation vault is HALT for security.
There is the code https://t.co/AOcEcBotRR
Maybe in future more Oracle would be add and spare implement to have better resilience

— Pierre Tomasina (@Pierozi) December 14, 2021

“I’m definitely glad that you halted the DeFiChain Vaults, don’t miss understand me, but how is it possible that you can do that?

I thought DeFiChain is very decentralised and only the masternodes could vote for such a thing?

It’s built-in, every new block register 3 Oracle prices. If there are a deviation vault is halt for security.

There is the code https://github.com/DeFiCh/ain/blob/master/src/masternodes/oracles.cpp#L177-L186

Maybe in future more Oracle would be add and spare implement to have better resilience”.

CoinMarketCap goes haywire, surprising investors

Last summer, the famous price aggregation site CoinMarketCap had apparently already gone haywire, although that time prices were actually down, with price drops in the last 24 hours of -100%. 

Obviously, seeing the price of Bitcoin at $0.14 had triggered panic among investors, with many users starting to complain about problems with both the site and, more importantly, CMC’s app. 

Conversely, what happened yesterday also had a sympathetic and happy report, putting users in a state of inner richness rather than panic. 

And indeed, CoinMarketCap shares the following as they “smile” about their own mistake:

How did it feel to be a trillionaire for a couple hours?😂

— CoinMarketCap (@CoinMarketCap) December 14, 2021

“How did it feel to be a trillionaire for a couple hours?”